davieb_IHB
New member
Hi everybody,
I've been reading the blog since Slate linked to it several months ago. I live in Phoenix, and have never been to Irvine, but it's a fascinating topic, and well-written to boot!!!!!! [Had to work in a few of those.]
I have a question. My brother and his now ex-wife moved from Reno to Carson City, NV, a couple of years ago. They put about $70,000 down on their house, which is now, of course, worth about $70K less. He has a fixed-rate, 30 year mortgage, a job he's held for years, and good credit. He wants to move back to Reno, and in with a friend. He's done the math, and realizes that he'll spend $60K making payments over the next three or five years waiting to recoup the down payment he's lost. By dumping the house and sharing expenses, he can potentially save that much in the next few years.
He's working with a real estate agent, who's pricing the house competitively--no "wishing price"--and he knows he's going to lose most or all of his equity. His concern is that he took out a line of credit to buy out his ex's share during the divorce. If he sells, he'll have to pay this off, and is looking at writing a check at closing for about $20K or more. A friend of his suggested that the bank _might_ convert this line of credit to an unsecured loan, and allow him to continue paying on it. I haven't heard of this option before.
Has anyone had any experience with this? My parents might be able to help him out, but he'd like to attempt to resolve it on his own, prior to hitting them up for a loan.
Thanks,
David
I've been reading the blog since Slate linked to it several months ago. I live in Phoenix, and have never been to Irvine, but it's a fascinating topic, and well-written to boot!!!!!! [Had to work in a few of those.]
I have a question. My brother and his now ex-wife moved from Reno to Carson City, NV, a couple of years ago. They put about $70,000 down on their house, which is now, of course, worth about $70K less. He has a fixed-rate, 30 year mortgage, a job he's held for years, and good credit. He wants to move back to Reno, and in with a friend. He's done the math, and realizes that he'll spend $60K making payments over the next three or five years waiting to recoup the down payment he's lost. By dumping the house and sharing expenses, he can potentially save that much in the next few years.
He's working with a real estate agent, who's pricing the house competitively--no "wishing price"--and he knows he's going to lose most or all of his equity. His concern is that he took out a line of credit to buy out his ex's share during the divorce. If he sells, he'll have to pay this off, and is looking at writing a check at closing for about $20K or more. A friend of his suggested that the bank _might_ convert this line of credit to an unsecured loan, and allow him to continue paying on it. I haven't heard of this option before.
Has anyone had any experience with this? My parents might be able to help him out, but he'd like to attempt to resolve it on his own, prior to hitting them up for a loan.
Thanks,
David
